DESY WAHYU RAHMAWATI

IMaBS A (20180410104)

ACCOUNTING ASSIGNMENT
Definition of Account
Account is a record in the general ledger that is used to collect and store debit and credit
amounts. The accounting reports providing this information called Financial Statements. The
primary financial statements of a proprietorship are the income statement, the statement of changes
in equity, the statement of financial position, and the statement of cash flows.
Financial Statement consists of :
1. A balance sheet or statement of financial position
A list of the assets, liabilities, and owner’s equity as of specific date, usually the close of the
last day of month or a year.
a. Assets is a resource controlled by the entity as a result of past events and from
which future economic benefits are expected to flow to the entity

b. Liability is defined as the future sacrifices of economic benefits that the entity is
obliged to make to other entities as a result of past transactions or other past events,
the settlement of which may result in the transfer or use of assets, provision of
services or other yielding of economic benefits in the future. Liabilities are reported
on a balance sheet and are usually divided into two categories:
i. Current Liabilities : these liabilities are reasonably expected to be
liquidated within a year.
ii. Long-term liabilities — these liabilities are reasonably expected not to be
liquidated within a year.

c. equity (or owner's equity) is the difference between the value of the assets and
the value of the liabilities of something owned. It is governed by the following
equation: Equity = Assets - Liability

2. Income Statement

A summary of the revenue and expenses for a specific period of time, such as a month or a

year based on matching concept.

 a. Revenue is the income that a business has from its normal business activities, usually

from the sale of goods and services to customers. Revenue is also referred to as sales or

turnover. Some companies receive revenue from interest, royalties, or other fees.

b. expense or expenditure is an outflow of money to another person or group to pay for an

item or service, or for a category of costs.

c. Profit and loss is summarise of the revenue. Cost and expenses incurred during

specified period.

d. Cost is monetary measure of the resources that have used or sacrificed an assets.

3. Statement of changes in equity

A summary of the changes in the owner’s equity that have occurred during a specific period
of the time, such as a month or a year. A Statement of changes in equity and similarly the
statement of changes in owner's equity for a sole trader, statement of changes in partners'
equity for a partnership, statement of changes in Shareholders' equity for a Company or
statement of changes in Taxpayers' equity for Government Financial Statement is one of the
four basic financial statements.

4. Cash Flow Statement

A cash flow statement, also known as statement of cash flows, is a financial statement
that shows how changes in balance sheet accounts and income affect cash and cash
equivalent and breaks the analysis down to operating, investing and financing activities.
Essentially, the cash flow statement is concerned with the flow of cash in and out of the
business. The statement captures both the current operating results and the accompanying
changes in the balance sheet. The cash flow statement is partitioned into three segments,
namely:
a. Cash flow resulting from operating activities : Operating activities include the
production, sales and delivery of the company's product as well as collecting
payment from its customers.

b. Cash flow resulting from investing activities : Purchase or Sale of an asset, Loans
made to suppliers or received from customers, payments related to mergers and
acquisition.
 c. Cash flow resulting from financing activities : Financing activities include the
inflow of cash from investors such as banks and shareholders, as well as the outflow
of cash to shareholders as dividends as the company generates income.

References :
https://searcherp.techtarget.com/definition/account
https://en.wikipedia.org/wiki/Account_(bookkeeping)
http://masihakuntansi.blogspot.com/2013/10/pengertian-akun-macam-macamnya.html
https://www.accountingcoach.com/blog/what-is-an-account
https://www.merriam-webster.com/dictionary/account
Accounting-Indonesia Adaption 25th Edition/Carl S.Warren James M. Reeve, Jonathan E. Duchac,
Novrys Suhardianto, Devi S. Kalanjati, Amir Abadi Jusuf, Cherub D. Djakman.